New Residential to acquire Shellpoint Partners for $190M
New Residential Investment announced that it has entered into definitive agreements to acquire Shellpoint Partners, a vertically integrated mortgage platform with established origination and servicing capabilities, for approximately $190M, subject to certain adjustments, plus potential additional consideration pursuant to a three-year earnout based on the performance of Shellpoint after closing. Shellpoint is an approved Fannie Mae and Freddie Mac seller and servicer and a Ginnie Mae issuer, with servicer ratings from S&P, Moody's and Fitch. The transactions have been approved by the board of directors of each company. Consummation of the Shellpoint acquisition is expected to occur in two stages. First, settlements on approximately $8B UPB of Fannie Mae & Freddie Mac Mortgage Servicing Rights. In the second stage of the acquisition, New Residential will acquire 100% of the outstanding equity interests of Shellpoint. The corporate acquisition is expected to close in the first half of 2018, subject to receipt of regulatory approvals and certain third party consents and satisfaction of certain other closing conditions.